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Saturday, May 26, 2018

Why so many cryptocurrencies?

If you are new to the world of cryptocurrency you have most likely heard about Bitcoin but that is only the beginning of the conversation. This list of cryptocurrencies is growing. But why? How many cryptocurrencies do we need?

It is a fascinating time to be watching the development of cryptocurrencies because there is so much development happening right now.

Here are a couple good resources to find out about all these coins:

WorldCoinIndex.com ranks all of the cryptocurrencies (at the time of this post there were 1810 ranked). The great thing about this site is the navigation. It is easy to click on any individual coin for more information including links to each individual website for more information. So if I am looking for information on any particular coin I start here.

TheMerkle.com put together a list of Top 50 Cryptocurrencies with just one sentence descriptions of each one. It is an interesting list and a fun way to look at these various coins.

Twitter is a good resource to go to for information on any coin by just using the Twitter search feature. If you aren't sure where to start you can always search #bitcoin or #cryptocurrency and go down the rabbit hole from there.

But why so many coins?

The answer is almost simple. Each coin represents something different. Bitcoin is of course the grandaddy of all cryptocurrencies and where this all started. (Following the emergence of Bitcoin is how this site got started.) From there other cryptocurrencies were developed each with their unique twist on the theme of digital currency.

BLOCKCHAIN

The backbone of Bitcoin cryptocurrency is called Blockchain.

The technology that made Bitcoin possible also makes it possible for us to exchange all kinds of information in a way that has never been possible before. It is a longer discussion about what Blockchain is and why it is so important but the important factor to this conversation is that it has allowed for a breakthrough in innovation and solutions to problems we have been trying to solve for decades.

How do we have accurate voting processes? BLOCKCHAINHow do we have secure medical records that are owned by the patient / not the healthcare facility / and can be accessible when we need them? BLOCKCHAINHow do we secure our electrical grid making it safe from hacking while also opening up opportunities for individuals to participate in energy conservation projects? BLOCKCHAINHow do we ensure accurate ownership / title of land to people around the world? BLOCKCHAINHow do we ensure that the food we are purchasing is actually organic and locally sourced? BLOCKCHAINHow do we improve gun safety without adding more ineffective gun laws? BLOCKCHAIN

There are a so many activities that can be tracked and managed via Blockchain technology. Right now all around the world there are amazing teams of people coming up with solutions to problems that have been out of reach in the past in part because the cost and logistics were too impractical.

Each one of these new solutions or platforms has a Token that is used to exchange value and verify the information being tracked.

We have to think of "Coins" in a new way. Many of the "coins" on the world coin index are actually "Tokens". These Tokens represent some transaction of value but may not have anything to do with money.

There is a difference between cryptocurrency and these Blockchain Tokens / Coins. Throughout the next few months we will break these down one by one as we feature some of the most interesting Tokens and Blockchain solutions.

In the meantime, we will continue to support the use of Bitcoin as a currency to be used in our local shops.

We would love to hear your questions about Bitcoin / Blockchain / Tokens / Cryptocurrency / ETC. Join the conversation over on Facebook.com/BackyardBitcoin.